The National Association of Shea Products of Nigeria (NASPAN) has raised the alarm over the potential fallout from the Federal Government’s recent temporary ban on the export of raw shea nuts, warning that the move could result in massive financial losses and wastage if not carefully implemented.
The ban, announced on August 26, 2025, was introduced as part of a broader strategy to encourage local value addition, tackle cross-border smuggling, and revitalise rural economies.
Speaking in Abuja on Friday, NASPAN President Mohammed Kontagora acknowledged the long-term benefits of the policy but described its sudden rollout as disruptive especially for aggregators and exporters who had already secured contracts worth billions of naira.
“While members appreciate the benefits and prospects of this pronouncement, the sudden announcement of the policy has created serious dislocations for aggregators,” Kontagora said.
NASPAN Seeks 90-Day Window to Honour Contracts
To mitigate the impact, NASPAN is urging the government to approve a 90-day transition period that would allow exporters with existing contracts to fulfill their obligations. Kontagora stressed that traders with proof of binding agreements signed before the policy change should be permitted to process and ship their goods under a regulated framework.
“We’re not opposed to the policy, but we believe a structured transition period is necessary to prevent financial devastation within the industry,” he added.
Nigeria’s Shea Sector Holds Global Significance
Nigeria is home to approximately 58% of the world’s shea tree population, giving it a unique advantage in the global shea market. Shea products are widely used in cosmetics, food, and pharmaceuticals, with rising global demand driving exports in recent years.
Kontagora noted that the policy, if properly managed, could reposition Nigeria as a top player in global shea value chains, with estimates suggesting that the domestic industry could generate over $300 million annually in the near term.
“This is a paradigm shift for the shea industry,” he said. “It’s an opportunity to build competitive capacity at home and unlock real value for Nigerian communities.”
Policy Recommendations for Sustainable Implementation
To ensure that the ban yields lasting benefits, NASPAN has proposed a series of policy interventions, including the creation of a Shea Marketing Board to help regulate market pricing and support local processors.
The association is also advocating for:
- Grants and financing support for domestic processors;
- Passage of the National Council on Shea Bill to provide an institutional framework for industry development;
- Stronger border security to curb smuggling and protect local investments;
- Integration of shea production into national climate and sustainability programmes.
Stakeholder Reactions and Broader Support
The Federal Government’s decision has already attracted backing from some quarters. The Nigerian Export-Import (NEXIM) Bank and the Raw Materials Research and Development Council (RMRDC) have voiced support, saying the policy will stimulate industrial growth and job creation. Kwara State has also endorsed the move and announced plans to commission a 50-tonne shea processing facility to take advantage of the new environment.
Despite these endorsements, industry stakeholders stress the need for careful handling to avoid unintended consequences that could undermine the sector’s growth potential.
“Policies must be progressive but also pragmatic,” Kontagora concluded. “With the right support mechanisms, this can be a win for the economy and for millions of Nigerians who depend on the shea industry.”
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